Bank of England economist tells businesses, households they ‘need to accept’ they’re poorer

British businesses and households “need to accept” they are poorer and stop asking for pay hikes or pushing prices higher, says Huw Pill, the Bank of England’s (BoE) Chief Economist.

Speaking on a Columbia law school podcast, Pill explained that a game of “pass the parcel” is occurring in the national economy.

Here is everything that he said, courtesy of the London Guardian:

“If the cost of what you’re buying has gone up compared to what you’re selling, you’re going to be worse off.

So somehow in the UK, someone needs to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices, whether higher wages or passing the energy costs through on to customers.

And what we’re facing now is that reluctance to accept that, yes, we’re all worse off, and we all have to take our share.

Instead, [people] try and pass that cost on to one of our compatriots, and saying ‘we’ll be all right, but they will have to take our share too.’

That pass the parcel game that’s going on here … that game is generating inflation, and that part of inflation can persist.”

Fascinating.

So, because the Bank of England created the country’s 10 percent inflation rate, it is the public’s fault for what they did.

Yes, they are poorer because of the actions taken by the British government and the central bank.